Be Honest, Be Sincere, Be Helpful

Seller attitude goes very far in building the necessary buyer comfort level.  Decide that you are going to be as honest as possible about the condition and history of your vehicle.  Lying about your car can cause countless headaches down the road.

Make up your mind BEFORE you sell your car that your goal is to find it a new home.  Having second thoughts during the process wastes your time, and more importantly the time of your potential buyers.  If you have the car for sale in other venues ("For Sale" signs, local print classified ads) be up front and mention this in your ad.  Also pull yourlistingimmediately when it sells, informing any interested bidders why the car is no longer available.

Realize that this experience may be new to both you and the buyer.  Misinformation and lack of know-how has killed many a deal.  If you see your buyer floundering because of lack of knowledge about the system or the process step in and give them a hand.

You've got a potential leg up on them because you've read this book.  You can share your experience without adversely affecting the selling price of your car.  As a matter of fact you may actually make MORE money because the buyer leaves details in your hands and you have more leeway in making the transaction quick and smooth from your perspective.

Be Honest to Yourself

This point is very important; once you've done the following steps to gather the information about your vehicle necessary for listing, try to be as objective as possible about the car's true worth.  You may have $40,000 invested in your car, but NADA reports a true value of $32,000.  No matter how hard you wish, it will be difficult to find a buyer for that car for $40,000.

Accurate car valuation is important to selling your vehicle quickly.  Setting an unreasonably high reserve for a vehicle (we'll discuss reserve pricing later) will frustrate buyers and in the end could cost you a potentially reasonable offer.  Set a realistic price based on condition and market value and your car will sell quickly.

Modifications Have No Value

You may have sunk $25,000 into a car for a fantastic paint job, killer stereo, and high-end low-profile wheels.  While you can be justifiably proud of your customized ride you may be shocked that buyers won't greatly consider these additions when presenting an offer.  Most buyers see these modifications as personal choices the seller makes to the car, but don't view these changes as increasing the net worth of the vehicle.

Customizing a car can be rewarding while enjoying the vehicle; just don't expect to reap a 1:1 return on these additions, even if they're brand new.   If you ever plan on reselling a car, be judicious in your upgrades, and consider them for your personal enjoyment only.

The one exception to this rule is the "clone" classic car.   These are vehicles that have been modified by adding options or changing components in an effort to make the car look like a rarer model.  An example of this is older Mustangs that have aftermarket parts added to give them the appearance and performance of rare Shelby-modified Mustangs.  These modifications, if done accurately, can actually add value to the car for a select group of buyers.

Some modifications can actually hurt the base value of a car.  "Pro Street", or drag racing, modifications typically involve serious modifications to the structure of the car.  This includes "Tubbing" (increasing the area of the wheel wells for larger tires by removing interior components and modifying the rear end), reducing weight by removing non-essential parts like door panels and radios, and even the replacement of steel body parts with lighter fiberglass components.

These modifications may make the car faster, but reduces the overall appeal of the car to just those buyers interested in such modifications.  Also the vehicle may not be "streetable", meaning it would be difficult to title.  Then there's the fact that few people want to buy a "used" drag car...

Remember; be honest about the modifications done to your car.  Try to save receipts and instruction manuals for the eventual day you want to sell the car.  They help to show your investment, and provide the potential buyer with a sense that you are a meticulous owner.
Determining the Car's True Worth

Once you've gathered information about the car you need to determine what its true worth really is.  The true worth of the car is considered to be the average amount a genuine buyer would be willing to pay for YOUR car.  This doesn't mean a car in a magazine, or a price listed in NADA, but YOUR car specifically.

The market value of the car is determined by a number of factors:

o        Condition
o        Rarity
o        Desirability
o        Market Forces

Condition

A car's upkeep and condition are directly proportional with the car's overall value.  If your car is a well-worn 100,000 mile daily driver that has faded paint and a ripped interior it will be worth substantially less than a well-kept 100,000 mile restored trailer queen that only sees the light of day for car shows.  Be honest in your evaluation.

Rarity

While Detroit cranks out millions of car per year, there are some models or combination of options that are made in low volumes, even sometimes unique examples.  Over the years these cars can increase dramatically in value in the collector market.  It is important to have proper documentation to prove your car is actually a rare car instead of a more common car that has been modified to appear as the rarer example (called "clones").

Well-made clones of some of the more popular rare cars do seem to gain an increase in value.  Good clones of Shelby Mustangs or Yenko Chevrolets are examples of this phenomenon.  But never assume you’ll automatically gain something by making a knock-off; the market is very fickle on this subject.

Desirability

Desirably is a very subjective concept.  In this case it is determined by the markets interest in a particular make or model.  For example today there is a huge market for classic Musclecars from the sixties and early seventies.  These cars that retailed for $5,000 can now fetch into the six figures for rare models.  This interest is driven by a nostalgic buying segment that wants to relive their youth by buying the cars they dreamed of or owned decades ago.

This factor is varies significantly based on current market trends.  A decade ago Ferraris ruled the roost in collector vehicle pricing.  If recent trends are any indication the current market for Ferraris is very soft today.  It’s difficult to predict the future marketability of many models, though some cars, like classic Mustangs, 1957 Chevrolets and Cadillacs, and other iconic models, tend to hold their value no matter what the market direction seems to be.

Desirability also may vary slightly based on the time of year.  It’s always easier to sell convertibles in the spring than it is in the dead of winter.

Also, venues you offer the car can have an influence on how successful you are in selling your car.  Try to find web sites and forums that specialize in your particular make or model.  Most of these sites have a classifieds section, usually with free listings.  This can be a tremendous resource.  By listing your car on these sites you may get more targeted interest from knowledgeable buyers.  The members of the web site may also refer other interested parties to your ad.

More information is available in our book Mastering eBay Motors - Get the Max when Buying or Selling Your Car Online